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A daily look at the most significant and interesting stories affecting Washington, DC. Written by Chelsea Cirruzzo, Cuneyt Dil and Paige Hopkins.

Axios D.C. Thought Bubble

Axios D.C.

Nearly a month after D.C. voters approved a ballot measure upending how tipped workers are paid, employers are grappling with how they'll adapt.

Why it matters: Initiative 82, which goes into effect early next year, is pushing some restaurant owners to consider adding service fees, which would mean an increase in your bill is coming.

Catch up quick: Under I-82, employers of tipped workers will have to pay employees D.C.'s full minimum wage (currently $16.10 per hour) by 2027 regardless of how much workers make in tips.

In early 2023, the required minimum pay will rise from $5.05 to $6 and will increase incrementally to the standard minimum wage by 2027. 

Driving the news: Restaurant owners have begun pushing for legislation that would exempt service fees from sales tax, DCist reports. 

Service fees are already unpopular among customers and can discourage them from tipping. Making them tax-exempt would stop dining out from getting even more expensive.

DC Council chair Phil Mendelson says he is open to working on legislation to address business owners' concerns, per DCist. 

What they're saying: Hank's Oyster Bar owner Jamie Leeds told Washingtonian she won’t open another restaurant in D.C. because of the initiative. 

She added that if she decided to offer lunch service, she'd consider an online system where customers order without a server and a runner delivers meals to their table.

1310 Kitchen & Bar owner Jenn Crovato is considering increasing menu prices, adding a service charge, and reducing front-of-house staff by having customers use QR codes to order. But she wants to take these steps slowly to see how customers react.

Crovato employs about 31 people at her Georgetown restaurant but says it may not be feasible to keep them all once the hourly wage increases. She estimates that her servers currently make about $43 per hour. Her bussers make around $27 per hour. 

If things don’t work out, Crovato says she’ll have to close. “If it’s a lose-lose for all of us, I may as well shut down and do something else.” 

Price hikes and service fees on the way as I-82 takes hold in D.C.

An increase in your restaurant bill is coming.

A waiter delivers food to customers at a D.C. restaurant. 

Dining out in D.C. might become more expensive. Photo: Saul Loeb/AFP via Getty Images

Washington, D.C.

Nearly a month after D.C. voters approved a ballot measure upending how tipped workers are paid, employers are grappling with how they&#x27;ll adapt.Why it matters: Initiative 82, which goes into effect early next year, is pushing some restaurant owners to <a class="gtmContentClick" data-vars-link-text="consider adding service fees" data-vars-click-url="https://www.axios.com/local/washington-dc/2022/11/09/initiative-82-dc-election-results" data-vars-content-id="387a0c86-7045-4c4e-86be-cd3158fc99a3" data-vars-headline="Price hikes and service fees on the way as I-82 takes hold in D.C." data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/washington-dc/2022/11/09/initiative-82-dc-election-results" target="_self">consider adding service fees</a>, which would mean an increase in your bill is coming.

News

The Commanders are enjoying a late-season momentum boost under Taylor Heinicke, who’s won four of his last five games as starting quarterback. 

Driving the news: After Sunday’s win over the Texans, head coach Ron Rivera announced a role reversal: Heinicke will remain the team's starter with Carson Wentz serving as backup. 

State of play: The underdog QB's recent wins are an unexpected but welcome turn of events for a team that started the season 1-4 and has about a 50% shot at the playoffs, according to 538’s prediction.

The 29-year-old Old Dominion University alum hasn’t gotten these wins completely on his own though. The Commanders' defensive line has been a powerhouse, racking up an impressive five sacks on Sunday.​​

Why it matters: Bringing focus back to the field is a needed shift after lots of attention has been on owner Dan Snyder and his latest round of scandals.

Yes, but: The playoffs are still a long shot. The NFC East is a competitive conference, and the last-ranked Commanders still have two more losses than the third-ranked Giants.

What’s next: For Heinicke’s success to end in a playoff run, the Commanders need to keep winning. They’re favored to beat the Falcons on Sunday. 

After that, they’ll have two tough back-to-back games against the Giants — a team that started the season strong but has recently struggled with injuries and a surprise loss to the Lions.

It’ll also help if the Eagles and Cowboys — currently ranked first and second in the conference — start losing. 

Currently, the Eagles have one loss on their record, courtesy of the Commanders' recent Monday Night Football win.

Zoom out: The Commanders could have gotten a playoff spot if the Cardinals had beaten the 49ers last night, but no such luck. Washington will have to find another way in. 

The bottom line: Heinicke is making the Commanders fun to watch again, and no matter what drama surrounds the team owner or its future stadium location, that’s a win for D.C. 

Heinicke could lead the Commanders to a playoff run

Commanders quarterback Taylor Heinicke is leading the team to a potential playoff run.

Heinicke is bringing the focus back to the field. Photo: Cooper Neill/Getty Images

The Commanders are enjoying a late-season momentum boost under Taylor Heinicke, who’s won four of his last five games as starting quarterback. Driving the news: After Sunday’s win over the Texans, head coach <a class="gtmContentClick" data-vars-link-text="Ron Rivera announced" data-vars-click-url="https://profootballtalk.nbcsports.com/2022/11/20/ron-rivera-taylor-heinicke-is-our-starter-carson-wentz-will-back-him-up-when-healthy/" data-vars-content-id="4704308b-d7ff-4cb0-94f1-725bfca241f5" data-vars-headline="Heinicke could lead the Commanders to a playoff run" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://profootballtalk.nbcsports.com/2022/11/20/ron-rivera-taylor-heinicke-is-our-starter-carson-wentz-will-back-him-up-when-healthy/" target="_blank">Ron Rivera announced</a> a role reversal: Heinicke will remain the team&#x27;s starter with Carson Wentz serving as backup.

Sports

The D.C. metro area's real estate market is starting to level off, according to the latest data from Redfin/MLS, Axios’ Brianna Crane writes.

Why it matters: After more than two years of plummeting inventory and high prices, homebuyers in the D.C. area have waited a long time for a little relief.

Yes, but: Mortgage rates started to surge in May and have since fluctuated between 6-7%, making monthly mortgage payments more expensive than they were a year ago.

By the numbers: Median home sales prices dropped from $554,000 in May to $515,000 in October, and inventory is up 15.7% since May. 

Homes also sat on the market three times longer. 

Homes sold in 12 days on average in May. In October, the average home sold in 36 days.

Half as many homes have sold above list price, 30.3% in October, compared to 61.2% in May.

In October, 32.7% of listings dropped their list price, up nine percentage points since May.

What we're watching: A reprieve might be on the way. Home prices are expected to start dropping nationwide, Axios' Matt Phillips writes. 

Existing home sales have fallen for nine straight months, and the supply of single-family homes is growing. With mortgage rates near 7%, experts say a large-scale housing slowdown is becoming increasingly likely.

Buying a home in D.C. is easier, but not cheaper

The real estate market is slowing down, but prices have remained high.

An 'Under Contract' sign outside of a D.C. townhome.

D.C. homes are sitting on the market longer now than they were over the summer. Photo: Andrew Harrer/Bloomberg via Getty Images

The D.C. metro area&#x27;s real estate market is starting to level off, according to the <a class="gtmContentClick" data-vars-link-text="latest data" data-vars-click-url="https://www.redfin.com/news/data-center/" data-vars-content-id="474659f6-5ed3-4d11-969b-ad132910dd2f" data-vars-headline="Buying a home in D.C. is easier, but not cheaper" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.redfin.com/news/data-center/" target="_blank">latest data</a> from Redfin/MLS, Axios’ Brianna Crane writes.Why it matters: After more than two years of plummeting inventory and high prices, homebuyers in the D.C. area have waited a long time for a little relief.

Real Estate

Note: "Typical" refers to the average home value in the middle 30% of estimated home values in a region. Data: Zillow. Map: Erin Davis/Axios Visuals

Overall, home prices are up in the D.C. region. But when you take a closer look at the data, some ZIP codes have seen modest price drops over the last few months — especially closer to and inside the District. 

20011, which includes parts of Brightwood Park. The typical home went from $801.8K in July to $789.7K in October.

20024, which includes parts of Southwest ($491.4K to $486K).

20902, which includes parts of Silver Spring ($526.5K to $521.1K).

22041, which includes parts of Falls Church ($433.4K to $427.8K).

22202, which includes parts of Crystal City ($817.8K to $808.3K).

20007, which includes parts of Spring Valley and is the only ZIP code in the District that’s seen prices increase, but only by half of a percentage point. Prices have stayed around $1.3M.

20912, which includes parts of Takoma Park ($666.2K to $680.8K).

The big picture: Areas further out in the suburbs and exurbs have seen more price increases. 

20198, which includes part of Fauquier County, has seen prices increase ($907.2K to $931.1K).

Your turn: Hover your mouse over the map above to see how prices have changed in your neighborhood.

Here's how home prices have changed in the D.C. region

Some zip codes have seen modest price drops over the last few months — especially closer to and inside the District.

Overall, home prices are up in the D.C. region. But when you take a closer look at the data, some ZIP codes have seen modest price drops over the last few months — especially closer to and inside the District.

First Lady Jill Biden unveiled the White House's 2022 holiday decor with the theme "We the People." 

What she's saying: "When our country comes together, we are stronger. What we share is so much greater than the things that pull us apart. The Soul of our Nation is — and always has been — 'We the People,'" she said Monday at an event at the White House. 

By the numbers: It took a week for more than 150 volunteers from across the country to install the decorations, which include:

Illustrations of both Biden pets, Willow the cat and Commander the German Shepherd. 

A menorah in the Cross Hall — made of wood from a Truman-era renovation — and sterling silver candle cups, per the AP.

A White House made of gingerbread with 20 sheets of sugar cookie dough, 30 sheets of gingerbread dough, 100 pounds of pastillage, 30 pounds of chocolate, and 40 pounds of royal icing.

Christmas decorations are displayed at the East Wing entrance of the White House.

Christmas decorations at the East Wing entrance of the White House. Photo: Alex Wong/Getty Images

Christmas decorations that feature first cat Willow in the State Dining Room of the White House.

Christmas decorations that feature first cat Willow in the State Dining Room of the White House. Photo: Alex Wong/Getty Images

The gingerbread White House in the State Dining room.

The gingerbread White House in the State Dining room. Photo: Tom Williams/CQ-Roll Call via Getty Images

Christmas decorations in the China Room at the White House.

Christmas decorations in the China Room at the White House. Photo: Alex Wong/Getty Images

A colorful White House Christmas bell display.

A colorful White House Christmas bell display hanging in the window of the Green Room. Photo: Tom Williams/CQ-Roll Call via Getty Images

Christmas decorations near a portrait of former President Barack Obama at the White House.

Christmas decorations near a portrait of former President Obama at the White House. Photo: Tom Williams/CQ-Roll Call via Getty Images

Christmas decor in the White House's East Colonnade.

Decor through the East Colonnade. Photo: Alex Wong/Getty Images

Christmas decorations that feature first dog Commander  in the State Dining Room.

Christmas decorations featuring first dog Commander in the State Dining Room. Photo: Alex Wong/Getty Images

Volunteers shared family recipes as part of the White House Christmas decor.

Volunteers shared family recipes as part of the White House Christmas decor. Photo: Alex Wong/Getty Images

The Green Room Christmas decor at the White House. 

The Green Room Christmas decor. Photo: Jim Watson/AFP

Photos: The 2022 White House holiday decorations

Take a (virtual) tour of this year's White House holiday decor.

White House Christmas decor in the Cross Hall.

White House Christmas decor in the Cross Hall. Photo: Tom Williams/CQ-Roll Call via Getty Images

Christmas

First Lady Jill Biden unveiled the White House&#x27;s 2022 holiday decor with the theme &quot;We the People.&quot; What she&#x27;s saying: &quot;When our country comes together, we are stronger. What we share is so much greater than the things that pull us apart. The Soul of our Nation is — and always has been — &#x27;We the People,&#x27;&quot; she <a class="gtmContentClick" data-vars-link-text="said Monday at an event" data-vars-click-url="https://abcnews.go.com/Politics/lady-jill-biden-unveils-2022-white-house-holiday/story?id=94072113" data-vars-content-id="77f145f3-cc0e-448d-b7be-41e40c82823b" data-vars-headline="Photos: The 2022 White House holiday decorations" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://abcnews.go.com/Politics/lady-jill-biden-unveils-2022-white-house-holiday/story?id=94072113" target="_blank">said Monday at an event</a> at the White House.

Paige Hopkins

Featured stories

Here's how home prices have changed in the D.C. region

Buying a home in D.C. is easier, but not cheaper

Price hikes and service fees on the way as I-82 takes hold in D.C.

Photos: The 2022 White House holiday decorations

Heinicke could lead the Commanders to a playoff run